MANILA, Philippines — The increase in bank deposits eased to a single-digit level of 6.1 percent in end-March from a double-digit increase of 12.5 percent in end-March last year, according to the Philippine Deposit Insurance Corp. (PDIC).
Total bank deposits reached P12.67 trillion from January to March, P729.7 billion higher than the P11.94 trillion recorded in the same period in 2018.
“The marked slowdown in deposit amount growth reflects the decelerated growth in all bank types but thrift banks,” PDIC said.
Deposits in big banks or commercial banks increased by 6.2 percent to P11.51 trillion in the first quarter from P10.84 trillion in the same quarter last year. Big banks cornered 91 percent of the total deposits.
The increase was lower than the 13.4 percent increase recorded in the same quarter last year.
On the other hand, the rise in deposits in mid-sized or thrift banks grew faster at 5.5 percent to P986.8 billion from P935.5 billion, while deposits in small or rural banks rose by 6.3 percent to P177.3 billion from P166.8 billion.
PDIC said the number of deposit accounts booked a double-digit growth of 12.1 percent to 65.2 million as of end-March this year from 58.2 million in end-March last year.
Rural banks posted the highest annual growth in deposit accounts at 17.3 percent followed by thrift banks at 11.9 percent and commercial banks at 11.9 percent.
Savings deposits and time deposits accounted for 74.8 percent of the total domestic deposit amount as of end-March 2019.
Nearly half of the domestic deposits, equivalent to P5.9 trillion were savings deposits, while time deposits cornered 28.2 percent or P3.6 trillion of the total deposits.
On the other hand, combined balances of demand deposits and NOW accounts totaled P3 trillion, while that of long-term negotiable certificates of deposits (LTNCD) reached P233.3 billion.
Individuals and private corporations made up 79 percent of the total domestic deposits in the Philippine banking system, while 13.8 percent belonged to government.
Trust departments, banks, and non-residents accounted for the balance of 7.2 percent.
The fastest growth in domestic deposit amount, however, was posted by trust departments at a rate of 33.5 percent, followed by banks at 29.1 percent and government at 11.3 percent.
PDIC said individuals and non-residents, likewise, posted positive growth at 4.9 percent and 2.2 percent, respectively, while private corporations registered a 1.9 percent growth.